Prakash Jha's P&M Mall in Patna may soon shut down

In a major setback to filmmaker Prakash Jha, the Bihar government has cancelled the allotment lease of the land on which his mall had been constructed in Patna. The closure order by the Bihar Industrial Area Development Authority (BIADA) was issued on April 20.

Prakash's P&M Mall, the first mall in Patna which opened five years ago, was given a repossession order after a dispute between the two parties over the subleasing of shops and outlets. Later, a row over revenue generation broke out between the two parties.

As per an order, issued on February 7, 2012, by the BIADA, the mall is liable to pay 10 per cent of the revenue to the government agency, if it chooses to sub lease the space in the mall to another party.

According to mall authorities, the amount calculated from the date the order was passed, till the present, amounts to Rs 40 lakhs. Authorities claim that they tried to pay the BIADA, which refused to accept the amount. The BIADA is claiming an amount of Rs 2.14 crore.

Mall authorities maintain that BIADA's calculation is with retrospective effect starting 2009 to 2013-14. Following the differences over the amount to be paid, the BIADA issued a notice to cancel the land lease to the mall.

Bihar Industries Minister Jai Kumar Singh said, "The issue of pending payments against P&M Mall came up during a review meeting of the department around two months ago. Only P&M Mall has not been singled out. Almost 57 cases are there against whom order of cancellation of land allotment has been made. It was decided that thw lease should be cancelled. P&M mall could face closure very soon after the process is complete".

However, mall authorities are considering moving the High Court against the order. They are also planning to file an appeal to the Principal Secretary of the Industries Department.

"We tried to make the entire payment for taking the land on lease from BIADA. In 2012, the BIADA ordered us to make a payment against sub-leasing the outlets in the mall. We agreed to make the payment from the date of order which is Rs 40 lakh but according to their calculation the due amount is Rs 2.14 crore. This is wrong", said a top official in the mall, on the condition of anonymity.

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